May 7, 2002

Broker's Notebook for Windows Data Conversion to Broker's Helper

The Broker's Helper Portfolio Management system is transaction-based. This means that the database stores and the code processes the myriad of transactions that occur in an investment account (as well as split and security price history). Positions, gains/losses, performance, etc. are calculated on a run-time basis based upon the date requested by the user. None of this information is stored in the database.

Broker's Notebook, on the other hand, stores transactions and holdings in its database. One does not require the input and storage of the other. In other words, the user can add/change the values of a security position in an account without changing the original transaction or adding a supplemental transaction. The user can "zero out" a position (close it) without entering a sell/cover transaction. Also the user can limit what accounts' holdings a split can affect. These characteristics of Broker's Notebook allows the transactional data and Holdings data to be "out of sync." The Holdings do not reflect what the transactional information says should be in the account.

A second issue is that Broker's Notebook allows "hanging trades." A position-closing transaction is allowed to be posted without a corresponding opening transaction being posted earlier. Broker's Helper does not allow "hanging trades."

For those Broker's Notebook users who do not keep their transactions, holdings, and split data "in sync" -- or for those who post hanging trades -- they may find their data is converted as completely as they expected. There are three possible "conversions" of portfolio information available.

1. All transactions are "posted" to the Broker's Helper system in trade date order as if the user was posting the trades manually or via a download. The split file and price history files are brought in as well. If the user has kept transactional data up-to-date and correct, this is the way to go. This will ensure the saving of historical information and allow historical performance evaluation (assuming data is complete and correct).

2. Only the holdings are posted to the Broker's Helper system as "Deliver Ins" (transfer ins). This is analogous to an Initial Download. The split file and price history files are not brought in. If the user has been consistently careless or lazy in their upkeep of their transactional data this is the better way to go.

3. Only non-trade transactions (dividends, funds in/out, etc.) and closed positions (buys/shorts with that have been sold/covered) are posted in trade date order. Then the holdings are posted as in number 2 above to create the open positions. This version allows some historical information to be saved. Historical performance cannot be performed. The split file and price history files are not brought in.